There is a flip side to seller financing restrictions and that is the possibility of more influence and funding by institutional/corporate broker/lenders in a billion dollar industry.Most of our financial laws appear to be a stab at consumer protection but they are often designed to limit the entry to the financial services industry by small operators, originators and brokers Pulling in the reighns has been a knee jerk reaction to fraudulent and deceptive practices by many small real estate operators and investors.

The restrictions are not just blanket percentages or LTV ratios.

You then pay that back from the sale to your end buyer.Banks sometimes put restrictions in the contracts or deeds about reselling quickly.

I am new to Short Sales and what I want to do is put the property under contract, negotiate the short sale with the lender and find an end buyer and close on the same day.I have heard that the lender can put a restriction on the deed stating that it can't be sold for a number of days.

I imagine if your house can be purchased using FHA financing, that would increase the pool of Buyers, and if there are restrictions on who/where FHA financing can be used.

Such minimum loan amount restrictions came into being during the depression due to scammer types.

You can refinance with some loans without restriction from a hard money purchase loan.

All valid restrictions of record; andb.

If so, there are all sorts of SEC and state restrictions you have to follow and you’re attorney is probably correct.

Wells has a general rule that they'll allow these transactions, but the underwriters have the leeway to impose the restriction if they want (many banks actually put personal responsibility for underwriting on their underwriters, so the underwriters have a lot of leeway to be more strict than the bank requires).So, if you want to go with a big bank, try Wells Fargo.